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I am really fizzing about the government's freezing of the inheritance tax threshold . Why is he doing it ? To help care for English elderly people so we in the rest of the UK ( Scotland anyway) pay more tax to fund this . People are under the misapprehension that care is free in Scotland . Well I can tell you it is not it is just the nursing part of it. My sister-in-law went through the entire value of her house to fund her care over £120,000
As far as I understand it, English oldies in care will still have to fund their "keep"; it's just nursing care that will be capped. However, we should probably wait for the full story about all this tomorrow. The devil will, of course, be in the detail.
I cannot understand this obsession about not selling your house when you go into care. What do you do with it? leave it empty? When one of my relations went into care and did not need to sell his house to fund his care, it still got sold because it was standing empty and needed care and maintenance although it was unoccupied.
The real reason people do not want to sell their houses is because, quite understandably they had been hoping to leave the value tied up in the bricks and mortar to their children. I own my own home and would like to do the same.
But one of the things one should learn as one grows older is that we cannot always do what we want and I think it is grossly unjust to expect all those taxpayers who do not own their own homes and cannot hope to leave a large legacy to their children to subsidise my care so that my children can trouser a significant capital sum when I die. The children of home owners are more likely to be well educated, in better employment and generally better off than the children whose parents are not home owners and I would be ashamed of my children if they were prepared to enrich themselves at the expense of people less well off than them
One of the issues which never seems to be addressed is the messages we send out to younger people. An increasing number of people are no longer paying into pension schemes as they see no point. Annuities are so low,defined benefit schemes virtually are non-existent outside the public sector so their attitude is that they might as well live better now and let the state take care of them when they are older.
The same applies to saving for the future. If saving means you will have to pay out in your old age then what is the point in doing so? Why save if the state will look after you if you don't?
When I was recruiting we had a company pension scheme which was equivalent to the company paying over 15% extra salary but most of new staff refused to join, they just couldn't see the point.
For many of us £650000 sounds like a lot of money but if you own your own house in some areas it is not such a lot and will be a very modest house. In those same areas the cost of care will be a lot more than in other areas.
I don't have any answers but don't think this is as simple as it sounds.
It seems that the election promise to raise the IHT threshold is to be broken. Shame they changed the name as it really is still 'Death Duties'
I'm glad to find I am not the only person who feels that it would be wrong to expect others to pay for me, should I need residential care in old age, just so that my children can inherit a nest egg.
Years ago, a friend of my father's used to read the section in one of the broadsheet papers that listed the amount left in the wills of the notables. His ultimate ambition was to die leaving nothing - having spent the lot enjoying his life!
I'd quite like to do the same, but always have a slight concern that the money might run out before time. Though DS2 did say 'that could be taken care of, Mother!!!!'
I agree, 'MrsJamJam' and the others who have made this point. My sons have even said to me that they don't want me to leave them my house. Why should I not make at least a contribution to my care if I need it? And if the only contribution I have to make comes from the sale of my house when I can no longer live there, so be it.
Yes janeainsworth We Scots will be paying more inheritance tax than we would have done if they had not frozen the threshold to fund this money for English elderly people . Not that I have anything against the English but it does seem unfair. Eleanorre
Eleanorre I don't understand – please can you explain. Is inheritance tax a universal tax in the UK or is it set at a separate rate in Scotland. Freezing the threshold affects all of us (I think) and is more than we expected because the Tory party made a promise to reduce the threshold. If nursing care is already free in Scotland does that come out of specifically Scottish funds or general UK taxation. I am not trying to be difficult – I just don't know.